Forex Scalp Trading Strategies and Indicators

Forex traders approach the market from different perspectives. Some expect quick and very fast profits. This is scalp trading. Others, invest. They have a different time horizon in mind. As such, scalp trading strategies simply won’t fit their personality.

Retail traders love scalping. They like the idea of making a quick profit.

If you come to think of it, scalp trading reflects human nature at its best. As humans, we don’t like to wait long for something.

Like in life, we grow impatient easily. And, when it comes to money, we have even less patience.

It doesn’t mean scalp trading strategies won’t work. They do, and, most of the times, they have a bigger success ratio than other strategies.

However, they come with some costs. For example, sticking in front of the screens all day.

In any case, scalp trading is a way to approach the Forex market. For most of the retail traders, it is the preferred way.

Retail traders don’t dedicate their entire time to trading. Most of them have day jobs, and so on.

Therefore, in their free time, they scalp for small profits. I mean, what’s wrong with supplementing your income with a trade here and there?

However, make sure you understand what scalp trading is and how to approach it. In this article, we’ll cover:

What is scalp trading?

Different scalp trading strategies

How to build a scalp trading system

Reasons for scalp trading

Cons of scalp trading

The main idea is to show the best ways to scalp trading. And, to demonstrate the advantages of scalp trading strategies over other ones.

What Is Scalp Trading?

If you open and close a trade fast, you either:

Made a wrong call and just realized it

You’re a scalp trader

A scalp trader has many great traits. Just to mention a few, he/she:

Likes to act fast in a fast-paced environment

Doesn’t mind spending hours in front of the trading platform

Grabs tiny amounts of pips, but, multiple times during the trading day

Doesn’t like to pay swaps

Patience doesn’t fit the bill. Why wait for a hundred pips move, when you can grab them in small trades?

As we all know, the market doesn’t always move. In fact, most of the times it ranges.

Statistically, prices stay more in range than in a trend. Therefore, scalp trading strategies make sense.

A scalp trader uses smaller time frames. But not only.

For example, if the market reaches an important Fibonacci level on the daily time frame, a scalp Forex trader may buy/sell around it. However, in doing that, it’ll go on the lower time frames to pick the actual entry.

A scalp trading Forex system is born on lower time frames. In fact, the lower the time frame, the better.

Scalp traders love a fast-paced trading environment. As such, it is no wonder they go down even to the one-minute period.

Damyan is a fresh MSc International Management from the International University of Monaco. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders. When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among 500 other traders. He was awarded a cup and a certificate at an official ceremony in his university.

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